Now that it appears AMEX is shutting down Bluebird and Serve accounts when you load them with gift cards, readers like Mark are asking about alternatives to meeting credit card minimum spending requirements.
AMEX Bluebird and Serve allowed us to pay bills (like rent and tuition) that don’t ordinarily accept credit cards. This was very helpful when trying to unlock sign-up bonuses that require thousands of dollars of spending in a few months!
Now that Bluebird has sung its swan song and Serve has served us our last meal, here’s 1 easy way to pay those same large bills using gift cards!
There’s a Workaround to the AMEX Bluebird and Serve Shutdown. I’ll Explain How to Pay Bills With Gift Cards
I’ll show you how to purchase money orders with gift cards. Then use those money orders to your bills!
How to Safely Purchase & Use Money Orders With Gift Cards
1. Choose a Card
Wouldn’t it be much easier to meet minimum spending requirements if your landlord accepted a credit card without any extra fees? What about your tuition? Your homeowners association? Or your credit card company?
Pick a Card, Any Card! But the Best Choice Is the 1 You’re Meeting Your Minimum Spending Requirements On
Unfortunately for most of us, these large monthly expenses do NOT allow credit card payments. Or if they do, they tack on extra fees.
So 1st choose the card with the sign-up bonus you’re trying to unlock.
2. Buy PIN-enabled Debit Gift Cards With Your Credit Card
You’ll have to find a store that will sell you the type of Visa or MasterCard debit gift card that has a PIN.
For example, Staples sells $300 PIN-enabled gift cards online and $200 MasterCard and Visa PIN-enabled gift cards in-store. Buy the largest denomination you can afford because each gift card has a fee.
Make Sure the Card You Select is a PIN-Enabled Debit Gift Card. Look at the Packaging to Make Sure You Can Add a PIN
Look at the packaging. It will say whether or not you can add a PIN.
Other places to find gift cards include supermarkets and some gas stations.
3. Buy a Money Order With Your New Debit Gift Cards
Not every merchant will allow you to buy a money order with a debit gift card. It can depend on your location. But some places to try include supermarkets, Walmart, and the post office.
Expect to pay ~$1 for the money order.
Find a Place That Will Sell You a Money Order With Your Debit Gift Cards Such as a Supermarket
For example, here’s what a friend of mine does:
When he gets a new credit card, part of his plan for meeting the minimum spending requirement is to pay off his other credit card bills using debit gift cards.
So he buys debit gift cards at Staples because it’s convenient for him. And these gift cards allow you to add a PIN. The $300 Visa debit gift card has a fee of ~$9 including shipping.
He goes to his local supermarket, in this case Publix. His neighborhood store charges 89 cents for a money order with a maximum value of $500. He loads $300 from 1 debit gift card and $200 from his other debit gift card. So in total he’s paid ~$19 for a $500 money order.
BIG NOTE: Do NOT deposit money orders into your checking account. Because it looks suspicious to banks and law enforcement. I know some folks do this, but I wouldn’t risk it!
Also, if you attempt to buy more than $3,000 in money orders at a time, most sellers will ask for identification and take down your social security number, driver’s license and other information. They will share this with the IRS.
And places will not sell you more than $10,000 worth of money orders in a day.
Why It’s Sometimes Worth the Expense
As you see, this is NOT a super cheap way to meet minimum spending requirements. But it could be worth it depending on the bonus.
If It’s Between Losing a Bonus or Paying a Fee, Which 1 Would You Choose?
Say for example that you aren’t able to meet the $3,000 minimum spending requirement in the 1st 90 days with the Barclaycard Arrival Plus. You could
a) not apply for that card
or
b) spend extra on gift cards and money orders to earn the 40,000 mile bonus worth over $400 towards travel.
Also keep in mind you’ll earn your credit card’s points when you purchase gift cards.
Ways to Reduce the Cost
You may have cheaper avenues to buy gift cards, like at Simon Mall.
Another way is if the card you’re working on has a bonus category. For example, certain cards give you bonus points or cash back at office supply stores or supermarkets. So this can offset the fees.
4. Use the Money Orders to Pay Your Bills
You can pay all sorts of bills with money orders.
This Guy Dives Into a Pot of Money. And Then Helps You Pay Your Credit Cards With Money Orders
My friend who uses this “money order method” goes to his local bank branch with a credit card he owes money on. The teller helps him fill out the money order. And she or he takes his credit card and the money order to a back room, presumably where the employees jump into overflowing piles of cold cash each morning.
The teller returns with a receipt. And soon enough, his credit card’s online account shows the payment received.
Do the Math When Choosing Which Bills to Pay!
You could also send a money order to your landlord. But calculate your costs!
RadPad Could Be a Cheaper Way for You to Pay Rent With a Credit Card
Using rent as an example, RadPad allows you to pay with a credit card for a 2.5% fee. That might be easier and cheaper for you than using money orders.
(RadPad also accept debit cards for free, but you can only use 1 card per transaction. So if your rent is above the value of the gift card, this won’t work for you.)
A couple of my friends have used RadPad for many months. And it’s been a reliable service for them!
Plastiq is another service that sends out checks to companies that don’t ordinarily accept credit cards. They also currently charge 2.5% for credit card payments. Some readers have reported issues with Plastiq, so keep that in mind.
Is It Worth It?
For folks already spending enough to meet minimum spending requirements, there’s no need to fuss with money orders or services like RadPad. But when the choice is between not getting the travel awards or spending a few extra dollars, do a quick calculation to see if it makes sense for you.
For example, the minimum spending requirement for the Barclaycard Arrival Plus is $3,000 within the 1st 90 days of opening your account. But you’re also working on minimum spending requirements for 2 other cards!
Now say your rent is $1,000 per month because you live somewhere economical or you’re renting a Manhattan studio apartment’s walk-in closet with a roommate who sleeps on the shelf above you.
You could use a service such as RadPad to pay your landlord. Enter your card’s’ information into RadPad and you’ll pay RadPad 2.5% of your rent. So in this case, Radpad gets $25 (2.5% of your $1,000 rent payment).
Always Run the Numbers to Make Sure It’s Worth It for You!
If the choice is between skipping the Barclaycard Arrival Plus or earning the sign-up bonus of 40,000 Arrival Plus miles (worth over $400 towards travel expenses), you might consider paying the fee!
And remember, you’ll earn miles and points when you pay RadPad because it’s a purchase.
With the Barclaycard Arrival Plus, you earn 2X Arrival miles on all purchases. So your $1,000 RadPad payment nets you 2,000 Arrival Plus miles worth ~$20 towards your next qualifying travel purchase.
Your $1,000 rent payment works out to cost you only ~$5. But more importantly, it got you a lot closer to earning the sign-up bonus.
Bottom Line
Now that AMEX is shutting down Bluebird and Serve accounts, we have to look for other ways to meet minimum spending requirements for our new credit cards.
One option is to purchase PIN-enabled debit gift cards with your credit card. And then use those gift cards to buy money orders. From there, you can use the money orders to pay merchants that usually don’t accept credit cards, like HOA dues, student loans, or tuition.
You can also pay some credit card bills by going into a bank branch with your money order.
I do NOT recommend depositing money orders into your bank account!
You might also consider paying rent with a credit card using RadPad for a 2.5% fee.
Always run the numbers to make sure it’s worth it for you. But if it’s between spending a little extra, and losing out on a sign-up bonus, the choice becomes a lot clearer.
Let me know if you’ve had experience with this workaround!
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